The goal of every average person is to have money, and every rich person is to earn even more! That is why we should not be surprised by the fact that famous and successful actors, singers, businessmen, and others are happy to enter cryptocurrencies, especially Bitcoin, which is considered the most famous and strongest digital currency. Cryptocurrencies are designed to become the future of money, and a certain section of celebrities seem to strongly support this idea or the revolutionary technology behind it. Many celebrities have publicly given support to cryptocurrencies and they themselves may own certain digital currencies. It is said that some of the celebrities could own a quantity of Bitcoin worth several million dollars.
Why cryptocurrencies and why Bitcoin?
Digital money is very popular and available to everyone today. There are a thousand different currencies, but Bitcoin with its value and popularity is far ahead of all. Today, with this virtual currency, you can pay for a luxury vacation or dinner at a restaurant, schooling, or a plane ticket. What is positive about investing in cryptocurrencies is that by installing a software application you get an “assistant” who will monitor changes in the market for you.
Bitcoin was often written off. However, in recent weeks, the oldest and largest cryptocurrency in the world has strengthened strongly again. At the beginning of the corona crisis, it seemed as if Bitcoin was a big loser. From mid-February to mid-March, the price fell by more than 50 percent – to only $ 4,895. However, today’s value has exceeded $ 45,000. Also, cryptocurrencies have benefited from the recently known plans of payment services giant PayPal to accept digital currencies as a means of payment. Investors assume that this step towards commercial use will give a new impetus to Bitcoin.
Let’s go back to celebrities and see who likes to enter Bitcoin the most.
1. Elon Musk
In the last few days, the whole world has been talking about the move of one of the richest people in the world. Tesla owner Elon Musk has announced that his company has bought Bitcoins worth a billion and a half dollars and that he has so much faith in investing in cryptocurrencies that he is considering selling cars for digital money. Whatever anyone thinks of Elon Musk, a controversial and often distinctive innovator and businessman, he can now be credited with the actual legalization of bitcoin, that is, its introduction into the mainstream.
2. 50 Cent
The famous rapper recently revealed that Bitcoin is a millionaire and that he earned over $ 8 million by accepting Bitcoin as a means of paying for his 2014 album. Many of his colleagues, such as Snoop Dog, Pitbull, and Mel B, came up with this.
3. Bill Gates
Although we are all familiar with his previous statements that investing in Bitcoin is a kind of investment in the “bigger fool’s theory”, we conclude that he is also one of those who gladly enter this business.
4. Kanye West
This rapper has long shown interest in bitcoin, and 3 years ago stated that everyone should look forward to the future as well as encourage the advancement of digital money.
5. Mike Tyson
Mike Tyson is another celebrity who sees bitcoin as an opportunity to make good money. Five years ago, this world-famous boxer launched a Bitcoin wallet in a partnership with a single company, and a wallet wallpaper is found as part of his tattoo on his face.
What do you need to know about cryptocurrencies?
Cryptocurrencies are electronic currencies that are based on cryptography, ie a very complicated cipher. They use cryptography for security and to prevent currency counterfeiting. The advantage of these currencies over standard money is that when creating, before issuing the first coin, each of the new currencies can be programmed to have the desired characteristics. They can be determined at what pace the new monetary units will be created, what the final offer will be in the end, whether the offer will be final, whether there will be initial distributions or monetary units will be allocated based on computer maintenance. When the creation process is completed, it will have 21 million coins, which means that it is characterized by a fixed monetary offer. Once the creation begins, the currency is listed on one of the sites that specialize in trading virtual currencies and the rest is on the market. Anyone who understands cryptography can create their own digital money. Of course, the technology used to create these currencies is still young and evolving, so it is realistic to expect new currencies that will be safer and more tailored to user needs as the system evolves further.
When one system fails, other options usually arise. In response to the consequences of the crisis, central banks are pursuing an expansive monetary policy, which increases the amount of money in circulation, thus devaluing their value. When only one central bank does this, it is usually not a problem. You can always exchange your savings for another, stable currency. But when all the major central banks bring down their currencies, savers are damaged and the way out must be outside the existing monetary system.
Entry costs are low, so anyone with a computer and internet access can buy pieces of Bitcoin for very little money (for example, even for $ 1). It would be realistic to expect that with the solution of technical problems of using cryptocurrencies in everyday life, the demand for them will grow, which would become a serious substitute for conventional currencies.
The fact is that virtual currencies will not be able to take precedence over conventional currencies shortly. The most optimistic estimates are that they could have a market share of between- 1-10% in the next 5 to 10 years. This means that it will co-exist with existing currencies.
At the moment, we have the phenomenon that countries also buy bitcoin (the USA, China, and Russia have small quantities for now). Every money on the market must have a good pass, ie. to be accepted by the people as a means of exchange. In that sense, two or three virtual currencies that will dominate will probably be singled out, and Bitcoin is certainly one of them.